Fear the boom and bust returns

A new video has been posted on youtube featuring an interview with the stars and creators of the Keynes vs. Hayek "Fear the Boom and Bust" music video.

The director of the video John Papola has this wonderful insight into the difference between Hayek and Keynes:

Too much aggregation is a problem that is pretty pervasive in the way these things are talked about. We heard about having too much slack capacity. Well, slack capacity to make what? What are we making with this slack capacity? If it’s capacity to build more houses that we don’t need, maybe that slack capacity doesn’t tell us anything about what’s going on.

I think Hayek looked at the world in terms of coordination, producing specific things for a specific demand. It’s not blobs of GDP that we buy and sell, and if we stop buying them, somebody else can buy them for us.